O.K., time to cut through the bullshit. Although the U.S. is a low tax country compared to most other developed nations, I think most of us can agree that paying 20-25% of gross income in payroll and income taxes is a pretty sizable chunk. And remember, that doesn't include sales tax, property tax, local taxes and fees, etc. I can handle that
if I'm satisfied with what I'm getting for my money, and
if the money is collected fairly. Let's take a look at those two aspects.
Here's where federal spending goes:
http://www.cbpp.org/cms/?fa=view&id=1258Social security = 24%
Medicare, Medicaid, CHIP = 22%
Defense and international security = 19%
Safety net programs (i.e., welfare) = 12%
Benefits for federal retirees and veterans = 8%
Interest on the debt = 6%
Transportation/infrastructure = 3%
Science and medical research = 2%
Education = 1%
Non-security international = 1%
Everything else = 3%
I look at that and immediately notice that the two largest expense categories fall entirely on the backs of middle class workers. Remember, only the first 118,500 of
earned income is subject to the payroll tax that funds social security and medicare. CEOs who are earning millions a year only pay the tax on the first 118,500. People who live off their investments pay nothing toward SS and medicare. They also pay preferentially low rates on their capital gains and dividends, so they are getting a sweet deal on funding the rest of the government. I also look at the third category and note that a lot of that goes to providing security for western Europe, the middle east, and other allies around the world who don't care to pay for their own security. Yet the remaining third of spending is what the politicians typically choose to argue about.
Incidentally, I work for the part of the government that is in the 3% "everything else" category. We constantly get shit on about how wasteful we are and how we need to improve our efficiency so we can do more with less.
So yes, working person, your taxes are high, but it's not because the government is wasting your money on research or welfare. It's because politicians choose to give preferential treatment to the people who pay for their campaigns.
